Key markets perform strongly! Unilever(UL.US)Q4 sales exceed expectations, and 2026 performance guidance remains solid

The Tong Finance APP has learned that thanks to strong performance in key markets such as the United States and India for premium beauty and home care products, Unilever (UL.US) exceeded market expectations with its Q4 2025 sales performance. The earnings report shows that Unilever’s Q4 sales amounted to 12.6 billion euros, a 2.7% decrease year-over-year; underlying sales grew by 4.2%, surpassing analysts’ expectations of 4%; seasonal volume increased by 2.1%, and prices increased by 2.0%.

By division: Beauty & Health division sales were 3.2 billion euros; underlying sales grew by 4.7%, volume increased by 2.8%, and prices rose by 1.8%. Personal Care division sales were 3.3 billion euros; underlying sales increased by 5.1%, volume by 0.6%, and prices by 4.5%. Home Care division sales were 2.8 billion euros; underlying sales grew by 4.7%, volume by 4.0%, and prices by 0.6%. Food division sales were 3.3 billion euros; underlying sales increased by 2.3%, volume by 1.3%, and prices by 1.0%.

This is Unilever’s first financial report following the spin-off of its ice cream business, including Ben & Jerry’s, and coincides with the upcoming one-year anniversary of CEO Fernando Fernandez’s tenure. Fernandez is continuing the transformation plan initiated by his predecessor, streamlining the large conglomerate by divesting brands that lack international scale, and focusing on driving growth for the company’s most successful products. Investors have welcomed this strategy, with Unilever’s stock price rising more than 12% in the U.S. stock market by Wednesday’s close.

Looking ahead, Unilever expects that its underlying sales growth in 2026 will be at the lower end of its multi-year target range of 4% to 6%, in line with analyst expectations. The company also announced that it will implement a 1.5 billion euro (approximately 1.8 billion USD) share repurchase program starting from the second quarter.

Regarding whether Unilever can sustain its current positive momentum, analyst opinions are mixed. The Barclays analyst team led by Warren Ackman stated in a report that growth in emerging markets—including India, Indonesia, Brazil, and China—may occur simultaneously. However, Deutsche Bank analyst Tom Sykes recently downgraded his rating on Unilever’s stock to “Hold,” noting that the company is already at a “historical high” compared to peers and has limited room for future growth.